Phil Ruse says you're never too old for a job
A new age discrimination law will come into force this October and employers - and legal expenses insurers - must beware of being caught napping.
As a legal expenses insurer, we could see an explosion of employment-related claims since this legislation will affect the whole of the working population of around 27 million.
Turning someone down for a job because they appear too old, or indeed too young, could spark costly litigation. We can expect to see a rise in applications to employment tribunals and greater demand for advice in this potentially complex area.
Of course, we may see some claims from young people who feel their age has counted against them. But I believe the floodgates will be well and truly opened by older people.
Some of them will have totally genuine claims, while others will be persistent, disgruntled 'Victor Meldrew' types. We must prepare for the rise of the grey litigant.
The right policy
My advice to employers now is to make sure they have appropriate policies in place.
It is well known that DIY superstore B&Q has for some years had an inclusive approach to recruiting older people. Looking at cabin crews for example, it was common years ago for recruitment to be focused very much on looks and youth. Now, many airlines employ older people. Why not adopt the practice sooner rather than later?
But there are still businesses that favour particular age groups. Any employer which has taken a discriminatory approach in the past needs to stop and consider that historic practices may come back to haunt them.
Employers will not be able to give specific age limits in job advertisements. An age limit will only be lawful if there is a "genuine occupational requirement" or if it is objectively justified, such as an actor required to play a young character.
Care must be taken in the wording of advertisements. For example, words such as 'dynamic', 'energetic' or 'mature' could all give the wrong inference.
Likewise, graduate recruitment schemes will also come under scrutiny. Even if a scheme contains no specific age criteria, it may not be easy for the employer to satisfy a tribunal that the candidate needed to have graduated within the past two years - a common requirement nowadays. When recruiting, an employer should beware of making assumptions. Is a candidate's age a reason for presuming they may be less technically competent? Furthermore, employees must not be denied training and promotion opportunities simply because of their age.
Bad language
Behaviour in the workplace must also come under scrutiny. Comments, even disguised as jokes, on race, sex and disability can result in legal action and now age will come under the same banner. Perhaps giving a quasi-humorous birthday card ridiculing a colleague's age could cause offence and give rise to action.
Pay and benefits create more difficulties. Some pay schemes are linked to service as are share option schemes and other incentives and employers must ensure that older staff are not unfairly penalised.
Pensions are a further minefield. The law does not affect state pensions, but decisions will need to be made with non-discriminatory pension benefits for those working beyond traditional retirement ages. A further issue is enhanced pensions for those within certain age bands accepting early voluntary redundancy.
Turning to the impact on legal expenses insurers, we must realise this legislation will be launched with a bang. The government is planning a massive media campaign so that people know the law exists. This oxygen of publicity will multiply the challenges thrown up by the new legislation.
We make no bones about the fact we believe rates need to rise across the board if we are to have a sustainable market and this law should be a catalyst. At Allianz Cornhill Legal Protection, we have spoken out before about pricing and the facts that rates are too low.
As we know, those who tend to have household insurance - where legal expenses cover will typically be included - tend to be homeowners and therefore older. They are more likely to fit the demographic profile of potential claimants.
Rates should rise now. Even though it will take at least 12 months or so for a bank of case law to develop, it does not take an expert to see that we are going to see more claims.
But even moderate rises will still mean this cover is excellent value when an experienced employment lawyer costs in the region of £150 an hour. Certainly, with so many affected, the value of having legal expenses insurance is brought into sharp focus.
Our Lawphone service is available 24/7, 365 days a year and our advisers will be able to give some immediate guidance on whether a claim is likely to have merit.
Health implications
Beyond legal expenses insurance, there will also be an impact on employers' liability insurers. Again it will be vital for managers to ensure that older - and younger - people have adequate training and that health and safety issues are given top priority.
Moreover, no one should forget the correlation between age and disability. An ageing worker has, by implication, a higher likelihood of also being able to take action under the recently strengthened Disability Discrimination Act which creates yet more opportunity for litigation.
We have sex, race and disability discrimination law and now anti-ageism is on the horizon. In terms of sheer numbers affected, this could be the one of the biggest challenges for our industry. We must tackle it now. IT
' Phil Ruse is divisional manager for Allianz Cornhill Legal Protection
What the age regulations will mean
Source: Age Positive ( www.agepositive.gov.uk )
